Company registration in Lithuania

Company registration in Lithuania
Lithuania

Located in Northern Europe, the Republic of Lithuania, is a member of the EU, Eurozone and Schengen area.

By registering a company in Lithuania, foreign investors can gain a foothold in the EU market and expand their business.

The advantages of setting up a company in Lithuania include:

  • low inflation rate;
  • proximity to European markets;
  • fast and easy company registration procedure;
  • investor-friendly legislation;
  • double taxation treaties with other countries;
  • highly qualified labor force;
  • modern banking sector;
  • opportunity to obtain a residence permit in Lithuania;
  • low taxes.

You can register a company in Lithuania by choosing one of the below business organization forms:

Uždarojiakcinė Bendrovė (Private LLC).

Key features:

  • share capital - 2900 EUR;
  • number of shareholders: from 1 to 250 (can be legal entities or individuals of any nationality);
  • number of directors: minimum 1 (only a physical person);
  • secretary is required (only a physical person);
  • audit is not required;
  • information about beneficiaries is not disclosed;
  • VAT return must be submitted annually;
  • financial reporting is required.

Akcinė Bendrovė (Public LLC).

Key features:

  • share capital – 43,500 EUR;
  • no restrictions regarding the number and residency of shareholders (individuals or legal entities);
  • number of directors: minimum 1 (only a physical person of any nationality);
  • secretary is required (a physical person);
  • trading in securities is allowed;
  • audit is mandatory;
  • Information about beneficiaries is not disclosed;
  • VAT return must be submitted annually;
  • financial reporting is mandatory;
  • registered office and address in Lithuania are mandatory.
Читать также: Luminor Bank Lithuania

Taxation

If you are intended in setting up a company in Lithuania you should keep in mind that the country has one of the lowest income taxes of 15% (among EU countries).

The tax rate can be reduced to 5% if:

  • a company’s income is up to 1 million Lithuanian litas.
  • the number of a company’s employees does not exceed 10.

Other taxes:

  • companies not involved in the agricultural sector are exempt from income tax;
  • dividend tax is 0% (standard tax is 15%);
  • VAT is 21%.

Considering registering a Lithuanian company remotely? Thinking about opening a corporate account in Lithuania? Why not contact YB Case?

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